Post Session Commentary - June 29 2009

Domestic market ended the volatile session on flat note backed by fresh selling in key stocks that emerged during last trading hours. However, market touched the day’s high during the second half of the trading, mirroring firm European markets but was unable to hold the momentum and slipped along with other Asian stocks. Earlier, benchmark indices moved between positive and negative terrain on continuous bouts of buying and selling ahead of the Union Budget 2009-2010 on 6 July 2009. In addition, Railway Budget is also due on 3 July 2009 and the Economic Survey on 2 July 2009. BSE Sensex ended above 14,750 mark and NSE Nifty closed around 4,400 level.

The market opened on upbeat note tracking positive cues from the global markets. Asian markets were in green in early trading and the US Markets closed mixed on Friday with the financial stocks reported a modest rally due to some upward movement in investment banking and brokerage stocks and diversified financial services stocks. However, the Indian benchmark indices lost ground soon after start and turned volatile. Investors were little cautious on delayed monsoon as it may lead to lower rural demand. Further, stocks managed to gain ground and bounced back on account of buying over the counters mainly led by positive European stocks. During the final trading hours, market again lost momentum as pared all its gains and ended on flat note on profit taking after previous session’s rally. From the sectoral front, most of the buying was witnessed in Consumer Durables, Realty, Metal, Oil & Gas, PSU and Bank stocks. BSE Mid Cap and Small Cap stocks also gained favour from the market. However, IT, Teck and Auto stocks contributed to most of the selling pressure on the market.

Among the Sensex pack 15 stocks ended in green territory and 15 in red. The market breadth indicating the overall health of the market remained positive as 1686 stocks closed in green while 964 stocks closed in red and 73 stocks remained unchanged in BSE.

The BSE Sensex closed marginally higher by 21.10 points at 14,784.74 and NSE Nifty ended slightly up by 15.45 points at 4,390.95. BSE Mid Caps and Small Caps closed with gains of 59.19 and 87.11 points at 5,230.09 and 5,887.86 respectively. The BSE Sensex touched intraday high of 14,955.55 and intraday low of 14,685.45.

Gainers from the BSE Sensex pack are Sterlite Industries (5.66%), DLF Ltd (3.82%), Reliance (2.78%), ONGC Ltd (2.61%), Tata Steel (2.38%), BHEL (1.54%), Hindalco (1.33%), NTPC Ltd (1.03%), M&M Ltd (0.94%), SBI (0.92%), Maruti Suzuki (0.68%) and HDFC Bank Ltd (0.64%).

Losers from the BSE Sensex pack are Tata Motors (7.77%), Sun Pharma (3.52%), TCS Ltd (2.77%), HDFC (2.61%), Grasim Industries (2.43%), Infosys Tech (2.35%), Herohonda Motors (2.13%), Rcom (1.76%), ITC Ltd (1.68%) and Wipro Ltd (1.32%).

On the global markets front the Asian markets, which opened before the Indian market, ended mostly lower. Hang Seng Nikkei 225, Straits Times index and Seoul Composite closed down by 71.75, 93.92, 0.78 and 6.08 points at 18,528.51, 9,783.47, 2.317.17 and 1,388.45 respectively. However, Shanghai Composite closed up by 47.10 points at 2,975.31.

European markets, which opened after the Indian market, are trading in green. In Frankfurt the DAX index is trading higher by 54.18 points at 4,830.65 and in London FTSE 100 is trading up by 21.81 points at. 4,262.82.

The BSE Consumer Durable ended up by (4.24%) or 122.24 points at 3,003.72. Gainers are Blue Star L (10.00%), Titan Ind (4.23%), Videocon Ind (0.99%) and Rajesh Export (0.69%).

The BSE Realty index gained (2.91%) or 97.97 points at 3,464.07 after successful fund raising by Unitech through a second round of qualified institutional placement. Scrips that gained are Pheonix Mill (5.36%), Housing Development (5.12%), Anant Raj (5.00%), Orbit Co (5.00%) and Sobha Dev (4.99%).

The BSE Metal index surged (2.59%) or 283.52 points to close at 11,214.93. Main gainers are Jindal Steel (5.91%), Sterlite Industries (5.66%), Steel Authority (4.19%), Welspan Gujarat SR (3.87%) and Tata Steel (2.38%).

The BSE Oil & Gas index increased by (2.40%) or 224.96 points at 9,613.29. Aban Offshore (3.51%), Reliance Petroleum (3.10%), Reliance (2.78%), ONGC Ltd (2.61%) and Gail India (2.02%) ended in positive territory.

The BSE IT index dropped by (2.07%) or 70 points to close at 3,305.32 on worries that the US economic recovery may take longer time that expected. Losers are Mphases Ltd (3.95%), TCS Ltd (2.77%), Infosys Tech (2.35%), Wipro Ltd (1.32%) and Financ Tech (1.17%).

The BSE Teck stocks lost (1.26%) or 33.72 points to close at 2,644.10. Major losers are Mphases Ltd (3.95%), TCS Ltd (2.77%), Idea Cell (2.52%), Infosys Tech (2.35%) and RCom (1.76%).

Wockhardt Limited surged 1.05%. The company announced the signing of an agreement to divest its Animal Health Division to Vetoquinol, France, Wockhardt''s Animal Health Division recorded net sales of Rs. 77 crore for the year ended December 31, 2008.

Jain Irrigation Systems Ltd. Ended up by 1.55%. The company has bagged large orders worth Rs. 158 crores (Rs.l580 million) from various Coca-Cola bottlers in India and overseas for supply of mango pulp for the 2009-2010 season. This is increase of more than 85% compared to last season. This product will be produced in the current mango season but dispatched over next year.

Larsen &, Toubro Limited (L&T) advanced by 0.24%. The company has bagged six orders aggregating to Rs.1230 crore from the electrical projects in the domestic market. This includes four orders valued at Rs. 1031 crore for transmission line & railway construction, and two orders worth Rs.199 crore for the construction of sub-stations.

Biocon Limited gained 1.21%. The company announced that it has executed a definitive agreement with Mylan Inc. for an exclusive collaboration on the development, manufacturing, supply and commercialization of multiple, high value generic biologic compounds for the global marketplace. Through this partnership, Mylan and Biocon bring together highly complementary capabilities that will significantly advance their efforts to secure a leading position in the emerging generic biologies industry.

Unitech Ltd zoomed 3.58% on reports it has raised Rs. 2,800 crore by placing shares with overseas private equity funds at Rs. 81 a share on Friday, 26 June 2009.

Tulip Telecom Ltd advanced by 6.30% after net profit jumped 60% to Rs. 105.73 crore on a 24% increase in total income to Rs. 519.52 crore in Q4 March 2009 over Q4 March 2008.

Jai Corp Ltd plunged 2.90% after the company reported net loss of Rs. 27.16 crore in Q4 March 2009 as against to net profit of Rs. 38.81 crore in Q4 March 2008.

Tata Motors Ltd dipped 7.77% after witnessing a consolidated net loss of Rs. 2,505.25 crore in the year ended March 2009 as against a net profit of Rs. 2,167.70 crore in the year ended March 2008.